aura Leasing Company signs an agreement on January

$1$

$,$

$2$

$0$

$2$

$0$

$,$

$$to lease equipment to Larkspur Company. The following information relates to this agreement.

$1$

$.$

$$ The term of the non

$-$

cancelable lease is

$3$

$$years with no renewal option. The equipment has an estimated economic life of

$5$

$$years$.$

$2$

$.$

$$ The fair value of the asset at January

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$,$

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$,$

$$is $

$5$

$9$

$0$

$0$

$0$

$3$

$.$

$$ The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $

$4$

$0$

$0$

$0$

$,$

$$none of which is guaranteed.

$4$

$.$

$$ The agreement requires equal annual rental payments of $

$1$

$9$

$2$

$1$

$1$

$$to the lessor, beginning on January

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$,$

$2$

$0$

$2$

$0$

$.$

$5$

$.$

$$ The lessee

$$

s incremental borrowing rate is

$5$

$\%$

$.$

$$The lessor

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s implicit rate is

$4$

$\%$

$$and is unknown to the lessee.

$6$

$.$

$$ Larkspur uses the straight

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line depreciation method for all equipment. prepare an ammorization scheudl that would be suitable for the lessee for the lease term